Yum! Brands, Inc. stock research
FY2025 Q4
Yum! Brands (YUM) Gross Margin — Quarter Ended Dec 31, 2025
Revenue minus cost of revenue yields gross profit, and gross margin is the ratio of gross profit to revenue. In the current quarter, revenue and gross profit were higher than both the prior quarter and the same quarter a year earlier, but cost of revenue increased at a faster pace, causing gross margin to be lower than both comparative periods. The filing describes the company's business as relying on extensive franchise operations and company-owned stores.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue minus cost of revenue yields gross profit, and gross margin is the ratio of gross profit to revenue. In the current quarter, revenue and gross profit were higher than both the prior quarter and the same quarter a year earlier, but cost of revenue increased at a faster pace, causing gross margin to be lower than both comparative periods. The filing describes the company's business as relying on extensive franchise operations and company-owned stores.
- The strongest observable margin driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.6%
Gross profit
$1.7B
Revenue
$2.5B
Cost of revenue
$815.0M
Quarter-over-quarter change
-2.7 pts
Year-over-year change
-1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.8B | $1.3B | $520.0M | 70.9% |
| Jun 30, 2025 | $1.9B | $1.4B | $560.0M | 71.0% |
| Sep 30, 2025 | $2.0B | $1.4B | $587.0M | 70.3% |
| Dec 31, 2025 | $2.5B | $1.7B | $815.0M | 67.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.7 pts
Year-over-year change
Dec 31, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Monitor the trend in cost of revenue growth relative to revenue growth in upcoming quarters.